Colorado Quantitative Testing Rule
3 CCR 702-10, the Colorado rule implementing SB 21-169 by requiring life insurers to test predictive models and external data for unfair discrimination.
The Colorado Quantitative Testing Rule, codified as 3 CCR 702-10, implements Colorado SB 21-169. It requires life insurers to test predictive models, algorithms, and external consumer data for unfair discrimination against protected classes. The rule sets out what must be tested, how the testing must be documented, and how insurers must report the results to the Colorado Division of Insurance.
The rule was one of the first concrete regulatory testing regimes for insurance AI in the U.S. It treats unfair discrimination not as a hypothetical risk but as a measurable output. Insurers must compare model outcomes across protected classes and explain any material differences.
The rule remains in force alongside Colorado’s broader disclosure-and-recourse framework under SB 26-189. Together, they show Colorado’s layered approach: targeted testing for life insurance models, plus disclosure and appeal rights for consumers affected by AI decisions.